Ocean Power Technologies (OPT) has recorded net loss for the three months ended January 31, 2015 (Q3) of $2.2 million, compared to a net loss of $0.8 million in the corresponding period in 2013.
According to OPT, the increase in the company’s net loss year-over-year primarily reflects increased product development costs associated with PB40 PowerBuoy project and increased costs associated with the next design iteration of the prototype APB-350.
George H. Kirby , President and Chief Executive of OPT, stated: “I am pleased to report that during the third quarter we successfully completed the relocation and reassembly of the PB40 PowerBuoy in Bayonne, New Jersey. We expect the PB40 PowerBuoy to be fully tested and ready for deployment this month. Actual deployment will occur as soon as final permits are received and an acceptable weather window opens.”
Furthermore, costs increased related to higher consulting fees and patent amortization costs related to shortening the estimated useful lives for recording amortization expense. These increases were partially offset by decreased site development expenses related to OPT’s terminated project in Australia. The increase in net loss was also a result of a decrease in income tax benefits and losses on foreign exchange.
For the three months ended January 31, 2015, OPT generated revenue of $0.3 million, compared to revenue of $0.2 million year-over-year. Furthermore, for the nine months ended January 31, 2015, OPT reported revenue of $3.6 million, as compared to revenue of $1.1 million for the nine months ended January 31, 2014.
The net loss for the nine months ended January 31, 2015 was $9.9 million, as compared to a net loss of $7.9 million for the nine months ended January 31, 2014. The increase in the company’s net loss year-over-year primarily reflects increased estimated project costs associated with the contract with MES, increased legal fees as well as higher consulting and patent amortization costs.
As of January 31, 2015, total cash, cash equivalents, and marketable securities were $19.9 million, down from $28.4 million on April 30, 2014. At January 31, 2015, restricted cash was $0.6 million, compared with $7.3 million as of April 30, 2014. This significant decrease in restricted cash is primarily due to the return of $4.7 million in customer advance payments that OPT had received for its former contract with Australian Renewable Energy Agency (ARENA).
“We remain focused on this year’s successful deployments of the PB40 and the next generations of the APB-350 in order to validate durability and reliability while seeking new customers and partners as part of our commercialization efforts,” Kirby concluded.